Housing price dynamics and convergence in high-tech metropolitan economies
AbstractAbstract This paper estimates the joint effects of spatial diffusion and high-tech industry transmission on housing prices. I find these effects are significant but generate different short-run dynamics and long-run convergence of housing prices. The spatial diffusion effect is instantaneous but short-lived, whereas the high-tech industry effect is persistent. The dynamics conclusion is supported by estimates of a dynamic panel model using data of 42 high-tech metropolitan areas. A further convergence test shows that it is the high-tech industrial transmission mechanism, not the spatial diffusion, to drive the housing price convergence.
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Bibliographic InfoArticle provided by Elsevier in its journal The Quarterly Review of Economics and Finance.
Volume (Year): 51 (2011)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/inca/620167
Housing prices Spatial diffusion Industrial transmission Convergence GMM Bayesian estimation;
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